GST Cuts On Bio-Pesticides, Fertilisers, And Agricultural Equipment To Boost Sustainable Farming

The government has reduced GST rates on key agricultural inputs, aiming to lower costs for farmers and promote sustainable farming practices.

Fertiliser Minister JP Nadda highlighted in Parliament that these reductions will support small and marginal farmers while encouraging environmentally friendly agriculture.

The GST on bio-pesticides has been cut from 12% to 5%. The government expects this move to reduce input costs and promote the wider adoption of integrated pest management practices.

Bio-pesticides play a central role in reducing pest resistance and maintaining ecological balance.

Nadda noted that competitive pricing would encourage a gradual shift from synthetic chemical pesticides to safer biological alternatives, aligning with the government’s vision of organic and residue-free farming.

The government reduced the GST on micronutrient fertilisers from 12% to 5% as announced on 22 September 2025.

Nadda explained that this has lowered production costs for small and marginal farmers who are sensitive to price fluctuations.

Reduced input costs have allowed farmers to apply recommended micronutrient doses more effectively.

According to the Indian Micro-Fertilisers Manufacturers Association, savings per acre due to the GST cut include Rs 140 for paddy, Rs 199 for sugarcane, Rs 446 for potato, and Rs 146 for wheat.

Support for Precision Agriculture

The government also cut GST from 12% to 5% on mechanical sprayers, sprinklers, drip irrigation systems, and nozzles. These reductions are expected to promote precision agriculture.

The fertiliser ministry noted that making plant protection equipment more affordable will encourage farmers to adopt scientific spraying practices. It also stated that affordable irrigation equipment will help farmers use efficient pesticide application technologies. This, in turn, will boost productivity and promote sustainability.

GST reductions from 18% to 5% on critical raw materials, including ammonia and sulphuric acids for fertiliser manufacturing, have improved cash flows for producers.

Nadda stated that lower working capital requirements, reduced accumulation of input tax credit, and enhanced domestic production will support fertiliser manufacturers.

He added that these measures will ensure the consistent availability of essential soil nutrients to farmers.

The government expects these GST reductions to strengthen sustainable and precision agriculture in India.

By lowering input costs and encouraging the use of bio-pesticides, fertilisers, and modern irrigation equipment, the reforms aim to boost farm productivity and promote ecological balance.

They also support the government’s broader goal of residue-free and environmentally responsible agriculture.

These measures mark a significant step towards making modern, scientific farming accessible and economically viable for farmers across India.

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